Transaction Analysis and Trial Balance Daniel Kelly, an attorney. opened his law practice on October 1. Prepare journal entries for the following October transactions, post the entries to the T-accounts, and prepare a trial balance: 1) Kelly started his law practice by contributing $19.500 cash to the business on October 1, receiving shares of common stock in the company. 2) Purchased office equipment on account $10,400. 3) Paid office rent for October, $700. 4) Paid $9,600 to access online legal database for two years. 5) Billed clients for services rendered, $11,300. 6) Made S6.000 payment on account for the equipment purchased on October 2. 7) Paid legal assistant's salary. $2.800. 8) Collected $9,400 from clients previously billed for services. 9) Received invoice for October utilities, $180; it will be paid in November. 10) The company paid stockholders $1,500 as a cash dividend.
Transaction Analysis and Trial Balance Daniel Kelly, an attorney. opened his law practice on October 1. Prepare journal entries for the following October transactions, post the entries to the T-accounts, and prepare a trial balance: 1) Kelly started his law practice by contributing $19.500 cash to the business on October 1, receiving shares of common stock in the company. 2) Purchased office equipment on account $10,400. 3) Paid office rent for October, $700. 4) Paid $9,600 to access online legal database for two years. 5) Billed clients for services rendered, $11,300. 6) Made S6.000 payment on account for the equipment purchased on October 2. 7) Paid legal assistant's salary. $2.800. 8) Collected $9,400 from clients previously billed for services. 9) Received invoice for October utilities, $180; it will be paid in November. 10) The company paid stockholders $1,500 as a cash dividend.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Transaction Analysis and Trial Balance
Daniel Kelly, an attorney, opened his law practice on October 1.
Prepare journal entries for the following October transactions, post the entries to the T-accounts, and prepare a trial balance:
1) Kelly started his law practice by contributing $19,500 cash to the business on October 1, receiving shares of common stock in the company.
2) Purchased office equipment on account, $10,400.
3) Paid office rent for October, $700.
4) Paid $9,600 to access online legal database for two years.
5) Billed clients for services rendered, $11,300.
6) Made $6,000 payment on account for the equipment purchased on October 2.
7) Paid legal assistant's salary. $2.800.
8) Collected $9,400 from clients previously billed for services.
9) Received invoice for October utilities, $180; it will be paid in November.
10) The company paid stockholders $1,500 as a cash dividend.
Debit
Credit
1) To record stockholder contribution
21 To record office equipment purchased on account
31 To record payment of rent expense
4) To record prepayment for database service
5) To record billing for legal services
6) To record payment on equipment
7) To record payment of salaries
B) To record receipt of cash from customers
91 To record utilties expense
10) To record cash payment of dividends
For T-accounts, enter your answers in the first available field under the appropriate debit or credit column.

Transcribed Image Text:Cash
Accounts Receivable
Legal Database Subscription
Office Equipment
Accounts Payable
Common Stock
Dividends
Legal Fees Earned
Salaries Expense
Balance
Balance
Balance
Balance
Balance
Dalance
Balance
Balance
Balance
Rent Expense
Utilities Expense
Balance
Balance
Daniel Kelly, Attorney at Law
Trial Balance
October 31
Debit
Credit
Cash
Accounts receivable
Legal database subscription
Orfice equipment
Accounts payable
Common stock
Dividends
Legals fees earned
Salaries expense
Rent expense
Utilities expense
Totals
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